Beer barrels brandished by Johnson and Sunak to toast tax cut would not qualify for reduction
Pair pictured with 30-litre containers - but only breweries that use 40-litre kegs will benefit from reduction
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Your support makes all the difference.It was a photoshoot that saw Boris Johnson and Rishi Sunak hauling kegs of ale about a London brewery to toast the 3p-a-pint cut in beer duty announced in the Budget.
There was, however, just one slight problem.
The barrels of booze the prime minister and chancellor posed with will not actually be eligible for the five per cent tax reduction.
They held the 30-litre containers most commonly used by independent craft breweries across the country – but the tax cut will only apply to beer in 40-litre barrels of draft beer and ciders.
Mr Sunak told MPs in his Budget speech that duty rates for draught beer and cider will be cut by 5%. Taxes on sparkling wine and some lower-strength products will also be cut as part of a huge overhaul of the UK’s alcohol duty system.
But the fact the tax cut will only apply to 40-litre barrels of beer means that not only did the photoshoot fall somewhat flat, it also left many smaller brewers “furious” that they will not receive the same relief as bigger multi-nationals.
“Absolutely furious at this point,” wrote Paul Jones, owner of the independent Cloudwater brewery based in Manchester, on Twitter.
“Draught relief for corps, not craft relief. This smacks of another budget in favour of the largest companies, with the whole craft sector left hanging without details of duty changes.”
The visit to London’s Fourpure brewery – a one-time independent operation now owned by Japanese multinational Kirin – was designed to promote and celebrate one of the budget’s more eye-catching announcements.
But the craft industry’s growing anger as it realised it would not be eligible for the cut quickly overshadowed the occasion.
Daniel Lowe, who founded Fourpure in 2013 before selling it in 2018, said: “It’s an interesting choice [for the photoshoot]. Whether that was an informed decision, who knows.
“The pictures I’ve seen are 30-litre kegs and wouldn’t qualify under the draught relief announced today, which misses a huge amount of the craft beer industry.”
The Society of Independent Brewers welcomed the relief but said it would now continue campaigning for it to be extended to containers of more than 20 litres.
“We look forward to working with the Treasury as they implement this landmark policy,” said chief executive James Calder. “Whilst hugely beneficial for producers of ‘real ale’, which is sold in 40-litre casks, most craft keg beer in the UK is sold in 30-litre kegs, meaning they cannot benefit.
“By amending this lower threshold to 20 litres the Treasury can ensure all independent breweries benefit from this welcome new duty relief on draught beer.”
Treasury sources indicated on Wednesday night that there was scope to revise the policy during the three months consultation period it becomes law in January.
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